An increasing number of organisations are instituting formal appraisal
systems for employees at all levels. This article reviews major reasons
for this widespread move and points out the failure of most performance
appraisal systems to form an integral part of an organisation's forward stra
tegic plan. While many organisations are adopting strategic plans designed
to produce widespread organisational restructuring and the reformulation
of organisational functions, the institution of PA systems in these same
organisations can create reward structures which reinforce the status quo.
PA should be a proactive intervention addressing future issues, supporting
rather than subverting corporate strategy. To achieve a supportive link
between strategy and PA, we suggest a series of questions to guide the plan ning of a PA sysiem so that it becomes a vital ingredient in moving the organ
isation toward a future vision.
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